Abstract
M.A. (Politics)
The Marikana massacre, together with the 21-week long strike of 2014 in the platinum sector, put the hostile labour relations noticeable in the mining industry, particularly the platinum sector, under the microscope. The Marikana massacre was also sparked by what was seemingly a labour dispute. Beyond exhibiting existing hostile labour relations in South Africa’s platinum belt and the mining industry as a whole, the two occurrences also indicate the prevalence of political risks.
The mining industry is a key industry in terms of the country’s economy. The platinum sector, in which the aforementioned events unfolded, is also a key sector. The mining industry accounts for about 17% of the private sector investment and a significant portion of the country’s exports. South Africa, being responsible for amounts exceeding 70% of the world’s production, is the largest producer of platinum. The sector is also the largest employer within the mining industry. In addition, the platinum sector accounts for most of the mining industry’s income. The sector accounted for 29% of the mining industry’s income in 2014, which was R117 150 million of R407 857 million. In 2015, the sector accounted for 22% of the mining industry’s R234 billion GDP.
Considering the significance of both the mining industry and the platinum sector and the hostile labour relations characterising the platinum sector, it was necessary to investigate the prevalent political risks in the mining industry, with particular interest in the platinum sector. The study only assesses four political risks ie labour relations, skills shortage, electricity constraints and the regulatory regime. These political risks are not exclusive to the mining industry and the platinum sector. The study attempts to show whose actions are responsible for the proliferation of the risks.